Bridgefort Capital has voluntarily delisted from the Zimbabwe Stock Exchange (ZSE), terminating the listing of its Class A and Class B preferred shares from the exchange.
Mr Justin Bgoni, the ZSE chief executive officer, said in a statement that the termination of Bridgefort's listing was effective November 26, 2024.
"The shareholders of Bridgefort met on 15 November 2024 and passed the resolution for the voluntary termination of its listing on the ZSE in accordance with Section 11 of the ZSE Listing Requirements.
"The company applied for the voluntary termination of listing on the ZSE in terms of the provisions of Section 11 of the ZSE Listing Requirements. As required by Section 64(1) (a)(i) of the Securities and Exchange Act [Chapter 24:25], the ZSE sought and was granted permission by the Securities and Exchange Commission of Zimbabwe to delist Bridgefort from the ZSE official list," he said.
The move is part of the company's transition into a financial services company through the acquisition of Diaspora Kapita (DK), a South African-domiciled investment holding company.
The company is targeting listing on the Victoria Falls Stock Exchange (VFEX) before year-end. The VFEX listing will be preceded by the issuance of 83 440 639 Bridgefort Capital Class A preferred shares to Diaspora Kapita shareholders, and after the allotment, the company would own 100 percent of Diaspora Kapita.
Bridgefort's outgoing chief executive, Mr Vernon Lapham, during the launch of the VFEX listing roadshow in Harare last week, said the acquisition of regulatory approvals was a work in progress.
"On the regulatory side, from the Reserve Bank of Zimbabwe (RBZ), we have some applications we are handling from the Bridgefort side, and the applications have already gone through our bankers.
"The RBZ has not given us a time frame, but it is work in progress, and I believe that will not take too long," he said. Mr Lapham said there was also need for approval from the South African Reserve Bank, because Diaspora Kapita was presently 100 percent South African company.
"So it kind of goes back to South Africa for the South African Reserve Bank approval, so the regulatory side is work in progress," he said.
Mr Lapham said the company intended to raise US$5 million from VFEX from the issuance of class A portfolio shares, just to Diaspora Kapita.
"But what we are doing is not an initial public offering (IPO); typically when you list the company, there is an IPO, but it is extremely difficult to get underwriting in Zimbabwe; therefore, we are having some discussions with banks who may front the various placements," he said.
He added that what was key was that the business did not need US$5 million from the outset, which will be raised from the issue of shares to Diaspora Kapita shareholders
"The US$5 million is actually a figure derived from a number of shares allotted to DK at a share price of 0,65 cents per share.
"With a new insurance business, the knock-on effect of all of these is going to change, so the amount may end up being more than US$5 million, and that's why we do not want to just place all the shares in the market at once; we would rather hold back and just use the capital along the way," said Mr Lapham.
Diaspora Kapita, established in 2014 in South Africa, is a collaborative venture between Zimbabweans living in the diaspora and their counterparts based in Zimbabwe.
The group provides a range of services and investment opportunities tailored to the diaspora community. These include comprehensive funeral services, which cover funeral arrangements, burials in South Africa and repatriations to Zimbabwe, diaspora-targeted investments, and alternative investment solutions.
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DK is also the parent company of several companies dedicated to creating value within the African financial services sector and among the African diaspora community.
Bridgefort Capital's incoming chief executive, Mr Vhusi Phiri, said the BridgeFort Capital-DK union will result in a company better positioned to become a leader in the African financial services landscape. He said new investors had an opportunity to support a proven, ambitious business model that directly addresses the unique demands of Africa's growing and globally connected communities.
"We want to get the diaspora to participate in the listing. So moving from ZSE is also a function of currency, ZSE trades in local currency, VFX trades in hard currency.
"Then there are a number of benefits in terms of the taxes that you pay on VFX; they are way lower than what you pay on the ZSE when you are disposing of your shares," he said.
